Part 7 Reversions and Case Study

Question 1

One basis point is

Answer 1

0.01%

(i.e., one 1/100 of 1%).

Question 2

Formula for Periodic rate i =

Answer 2

Nominal annual rate /
Number of periods per year

Question 3

Rentable Area

Answer 3

GBA
- Elevators (floor penetration)
- Stairways (floor penetration)
- Exterior Walls

Question 4

Useable Area

Answer 4

GBA
- Elevators (floor penetration)
- Stairways (floor penetration)
- Exterior Walls
= Rentable Area
- Hallways
- Common Restrooms
- Utility/Mechanical Rom